Can I Start a Business with No Money? Yes. Follow These 8 Steps.
You may be asking yourself, "Can I really start a business if I have no money?"
Spoiler alert: Yes, you can.
Whether you’re launching your first product or exploring low-cost business ideas, the key is starting where you are and using what you already have.
Follow these eight steps to start and grow your business.
How to start a business with no money.
Many successful entrepreneurs began with low-cost business ideas or no capital at all. They just started with what they knew and took one small step forward. You can too.
1. Keep your day job.
People often consider starting their own business when they have a conflict with their boss, are turned down for a raise, feel unappreciated, dislike their coworkers, or have other complaints about their current job.
Do you dream about going to work tomorrow and telling your boss to take their job and shove it? Think before you close that door behind you.
Don't throw away your secure job. Starting and growing a business is a long, hard road. Maintaining your current income while building your business on the side enables you to gain traction on your new venture while still having money coming in. As your new business generates revenue, you can gradually transition to full-time business ownership.
2. Identify your most marketable skills. Something you already know how to do and enjoy doing.
Successful entrepreneurs have a passion for what they do. What do you have a passion for? What motivates you? What would you love to do even if you weren't getting paid for it? Consider turning your passion into the foundation for a business.
Do you have expert knowledge of nutrition and enjoy physical fitness? Have you thought about becoming a personal trainer?
Do you love to talk about your city's history and show friends and family its famous sites when they visit? How about starting a tour business for out-of-state visitors? Do you live in a remote area? Offer hiking tours or fishing adventures.
By leveraging your existing abilities and passions, you can jump-start your business without a large cash outlay before your company has any paying customers.
3. Launch your website.
A website is your online store. The home page is your front door, window display, and welcome sign. It has as much impact on whether your potential customer comes in and looks around as if you had a physical shop. Showcase your products and services, establish a trustworthy and high-quality brand, and always provide an easy, direct route for potential customers to buy what you offer.
Web hosting is one area where I believe you get what you pay for, and using a completely free website builder is not necessarily the best choice. A free site can be severely limiting in terms of its capabilities and technical capacity, confusing to create, and provide little to no customer support.
Evaluate cost-effective website builders, including Hostinger, GoDaddy, Squarespace, and others based on your specific needs. Will you be selling products and services directly from your site? Will you publish a blog? Does it have drag-and-drop webpage development capabilities, or do you have to know how to code? Are email marketing tools included? These are just a few of the requirements to consider.
4. Explore alternative funding sources.
When you're starting a small business from scratch, you may not qualify for a traditional loan. However, there are startup funding options like microloans, crowdfunding platforms, or grants specifically for new entrepreneurs.
Crowdfunding
Online sites like GoFundMe, Indiegogo, and Kickstarter are becoming common resources for financial support. They enable you to raise money from people who believe in what you're doing and are happy to support you financially. Statista, the global data and business intelligence platform, reports that North American crowdfunding platforms have raised approximately $74 billion for those people and businesses seeking financial support.
Microloans / Microfinancing
A microloan is a small amount of money loaned for a short period, often at a low interest rate. Microloans are typically made available by nonprofit and community-based organizations to startups or individuals who may not qualify for larger loans from conventional banks or other financial institutions.
The average microloan is approximately $13,000 and is often used for items like inventory, working capital, supplies, equipment, furniture, and fixtures. You can research local options by clicking on your state in the callout below in this post or visiting the US Small Business Administration (SBA) page on microloan eligibility.
Angel Investors
An angel investor is a successful individual or entrepreneur interested in early-stage startups and small businesses. They invest their money in exchange for a percentage of equity in the business. They may also offer mentorship, deep expertise, and introductions to other contacts and resources you could not have connected with on your own. Start a search for angel investors by seeking out pitch competitions or events, joining startup accelerators, and networking with investors in your area.
Grants
While finding specific grants can be like finding a needle in a haystack, some organizations and government programs offer grants to help people like you start and grow your business. On the federal level, Grants.gov makes grants available to organizations and companies that support the development of government-funded programs. Regionally, states like Connecticut, Louisiana, Nevada, Maine, Illinois, Oregon, and others have venture development organizations formed to broaden and strengthen their state's entrepreneurial community.
Click on your state's text link in the callout below to research grant opportunities available in your state and through the federal government.
5. Establish a bootstrapping strategy.
No entrepreneur or small business owner ever said that starting a business is easy.
People often have a romantic notion of starting and growing a business until reality slaps you in the face. As a new business owner with little to no money, you’ll probably do everything yourself. You’ll be the CEO, website designer, product developer, salesperson, customer service rep, marketing manager, and more. I learned this on the second day my business was open – and I bootstrapped my way to success.
Bootstrapping is how entrepreneurs start and grow their businesses with minimal outside funding. They rely on their own resources, personal savings, and possible contributions from friends and family. They "leverage existing skills and networks and maximize efficiency to achieve profitability without relying heavily on external capital. A bootstrapped startup emphasizes the self-sufficiency and resourcefulness of its founder."
Bootstrapping requires a lot of work on your part, but it can be an excellent way to get your business off the ground by:
Employing sweat equity
Instead of hiring full-time professionals to be your customer service representative, your website developer, and your marketing manager, take on these responsibilities yourself. Free online resources can teach you the basics you need to know while getting started.
When you eventually need additional help, hire individuals on a project basis. That way, you pay a flat rate for a specific project and, when completed, they leave. You have no additional expenses and can use your available funds in a different area of your business that requires more support.Bartering and trading for services
Get to know other entrepreneurs and offer your services to them if they would be willing to provide services to you. If you are a website designer but need someone with excellent wordsmith skills to write the content for your website, partner with a writer to write the copy for your website and offer to redesign their website or create new pages.
This collaboration does not require you to pay anything for the services you get. It can also lead to increased exposure of your business and services among your collaborator's customers.
Starting small with a minimum viable product (or service)
Start selling a version of your product or service in its most basic form. As your income grows, reinvest the money to improve and expand your offering as you learn more about your customers' wants and needs. For example, if you launch an online store, begin with a limited product range until you understand what sells well and what does not. If you sell services, focus on a very targeted portfolio to build a reputation for quality and expand from there.
Understand that bootstrapping is not easy. It requires commitment, willingness to learn, ingenuity, and long hours. Implementing this strategy might result in your business taking longer to grow. Still, it will provide invaluable insights into all business areas so you can be a more effective and efficient business owner as you expand and hire staff.
6. Take advantage of free business tools (and almost free business education programs.)
There are plenty of free tools for small businesses, like Canva for design, Wave for accounting, and Mailchimp for email marketing, that help you get started without spending a dime. Take advantage of these online business tools and off-line business resources like the one’s I’ve included here.
State government agencies
Every state in the United States has a business division. It is often included on the Secretary of State's website, but the business division may have its own website if business development and entrepreneurship are important initiatives in your state.
It can include information and resources related to checklists and guides to starting a business, getting permits and establishing certifications, registering employees, accessing tax forms, and more.
The US Small Business Administration also has state offices that provide funding programs, counseling, information on government agency contracts, and disaster recovery services.
Local, regional, and national nonprofit organizations
Nonprofit organizations focused on women's economic empowerment are wonderful resources for accessing training, education, business planning, mentors, certifications, and a large community of other women at various stages of the entrepreneurship journey.
Local Small Business Development Centers (SBDCs), Women's Business Centers, associations of women business owners, and other organizations commonly provide confidential mentoring programs for women across racial, ethnic, and socioeconomic backgrounds.
Funding sources
The US Small Business Administration and state-based quasi-public agencies provide financial services including loans, investment capital, surety bonds, and grants to turn early-stage ideas into growing businesses.
Business publications
Local and state business newspapers and magazines also feature articles on business trends, resources, networking, and events. They often focus on specific industry verticals and may dedicate entire issues to small businesses and women business owners, keeping them informed on best practices and the latest trends.
Are you a woman who wants to start her own business?
Select your state below to connect with government agencies, nonprofit organizations, funding sources, educational institutions, publications, and more startup business resources near you.
Entrepreneur networking events
Entrepreneur networking events, small business meetups near you, and virtual workshops are great ways to connect with other people. These individuals can become valuable connections and provide constructive advice to help you advance your business more quickly than if you tried to go it alone.
Don't be shy about asking lots of questions at networking events, webinars, workshops, and conferences. You will be amazed at how many people are happy to help you succeed without strings attached. You also never know where you will connect with new customers, potential mentors, and future business partners.
Online learning platforms
To enhance your business skills, take advantage of free and low-cost courses related to business development, entrepreneurship, sales strategy, marketing, finance, and more on platforms like Coursera, LinkedIn Learning, Khan Academy, and Udemy.
Library learning
With the Internet always available on our desktops, laptops, tablets, and smartphones, we forget that our local library is still a great resource for free business books, magazines, research materials, and more. Take advantage of this often-forgotten resource. You may not have been to the library in decades. Revisit it and see what valuable information you can find.
Marketing tools
There are lots of free marketing tools available to help your business get up and running, manage your customers, analyze your website visitors, communicate with your community, and more. HubSpot provides free CRM (Customer Relationship Management) tools. Canva offers free graphic design capabilities and templates perfect for non-designers. Free social media platforms like Facebook, YouTube, X, LinkedIn, Instagram, and Pinterest enable you to create business profiles and build a community of customers and fans. Free email marketing platforms like Sender will enable you to automate your marketing communications and convert leads to customers more effectively.
7. Embrace the gig economy. Businesses to start with little to no money.
Your new business might start as a side hustle while you still work at your day job to pay the bills. That's okay. As I've already mentioned, it's good to start slow and small and expand as your bank account grows.
If you're looking for business ideas with no capital, consider service-based options like freelance writing, virtual assisting, or consulting.
Here are some examples:
Freelance services.
Are you a graphic designer? Do you know how to code? Do you enjoy doing administrative tasks? Offer your skills as freelance services. Use your website to present your unique capabilities and expertise and highlight samples of your work. Remember to include a contact page so interested individuals or businesses can quickly and easily contact you by phone, email, or social media.
Other freelance websites, such as Freelancer, Upwork, Fiverr, and SolidGigs, can also connect you to companies looking for your specific skills.
Outsourced content creation or ghostwriting services.
The demand for new content is huge across businesses of all sizes. If you love to write and are good at it, you can offer content creation services writing website content, product brochures, e-books, print books, blog posts, and more.
Consulting services.
Businesses often seek out expert advice on specific topics like corporate law, finance, marketing strategy, product development, international distribution, and sales channel expansion. Are you an expert in any of these areas? If so, consider providing consulting services.
You can offer individual consultations, speak to corporate groups, develop online courses and host your own webinars, or partner with others to create a virtual conference.
Recognize that while you may be just starting your business and have little to no consulting clients already, you have a wealth of knowledge in your head that is extremely valuable to others.
Online courses.
Share your unique expertise by creating and selling online courses on your subject of choice. Platforms like Udemy, Teachable, Kajabi, and others enable you to earn money by sharing what you know.
You can also offer online or in-person tutoring services for students seeking academic assistance.
Virtual assisting.
Busy professionals, small businesses, and entrepreneurs often hire a virtual assistant to take over administrative responsibilities they don't have time for. Your administrative services could include making phone calls, scheduling appointments, managing electronic data, updating social media, email marketing, data entry, and more.
Graphic design.
Do people say they love your designs? Use your graphic design skills to create company logos, marketing posters and brochures, product packaging, website layouts, and more.
Translation services.
Do you speak another language? Provide translation services to individuals, businesses, and publishers for documents, websites, audio and video content, and books in languages you speak fluently.
Handmade gifts.
Do you enjoy creating and gifting handmade crafts to your family and friends? You can create and sell your handcrafts online to a much larger community of supporters on popular platforms like Etsy.
Event planning.
Do you love planning parties or large family gatherings? Why not get paid for it? Assist individual customers or businesses in planning and coordinating corporate events, weddings, parties, trade shows, and industry conferences.
Gardening services.
Use your green thumb to offer gardening services like lawn mowing, weeding, plant recommendations, or landscape design to people in your neighborhood and across town.
Meal prep.
Do you love to cook? Why not prepare and deliver homemade meals or meal kits to busy professionals and families? You can also package individual pastries and savory dishes and sell them to boutique shops, cafes, and specialty stores.
8. Collaborate. Partner with other businesses.
Seek out joint marketing opportunities.
Another key strategy for those starting a business with no money is to collaborate with other small business owners. As you get to know other business owners, consider if they have a complementary business to yours in which you could both benefit from a joint marketing campaign. A complementary product or service is one that is related to your offering in some way but is not a direct competitor.
For example, a bakery owner may partner with an event organizer or party planner to bundle specialty pastries or a cake with every event contract.
Look closely for opportunities to collaborate. This will enable you to tap into an untapped customer base and reach a wider audience.
A joint campaign is particularly beneficial if you partner with a person or business well-known in the community or across social media. You can leverage their influence, reputation, and brand in the market to become more well-known yourself based on your business relationship with them.
Embrace community support.
Engage with your local business community. Attend chamber of commerce meetings, industry-specific gatherings, and networking events. Share your business journey with others, seek advice, and offer help to business owners just starting out. Building relationships within your community can lead to referrals, partnerships, and valuable insights that can help your business be more successful.
Starting a business without money may feel intimidating, but it’s completely doable. If you follow the steps above and stay focused, you’ll learn how to start a business with no money and increase your chances of success in building a thriving business.
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